QSR February 2023

TheMelt HEADQUARTERS: SAN FRANCISCO, CALIFORNIA

Folsom, California. In 2023, the company plans to double in size, opening 10 corporate stores and 20 licensed partner outlets. i.8sushi HEADQUARTERS: LOS ANGELES, CALIFORNIA UNITS: 2 Chef J. Margaux started i.8sushi in the heart of 2020’s quaran tine. It began in a home garage kitchen in L.A. as a way to prank family and friends during trying times, she says. Or, to show them “great things can come in differ ent and unexpected packages.” That happened to be delivery sushi in a pizza box. As it turned out, Chef Margaux’s Filipino- and tropical-f lavor-inspired creations spawned a fast following. The eco friendly and offbeat experience erupted on Instagram. Looking to meet demand and unable to do so from the garage, Chef Margaux, a 23-year-old immigrant from the Philippines, took the brand to a commercial ghost kitchen in the San Fernando Valley before even tually opening a storefront on Sunset Drive. Chef Margaux got her brand off the ground—and scaling—in two years with Univer. se, an app that helps upstarts like i.8sushi build a website, open shops, and take payments from their phone. Her plan now is to expand as a takeout favorite across L.A. before, hopefully, thinking national. “Our

goal is to give back to the com munity through serving great

PeterPhillips, cofounderof

ChipCityCookies, recalls he and business partner Teddy Gailas searching for a capital raise to expand the business. However, the duo left meet ings disenchanted with many of the venture capi talist groups. They didn’t have the same belief in cul ture; talks seemed to focus solely on numbers. After several back and-forth exchanges with different entities, Phillips was eventually introduced to Mark Leavitt, one of three managing partners at Enlightened Hospital ity Investments, a fund connected to well-known restaurateur Danny Meyer. When Leavitt and Phillips sat down for a conversa tion, there was agreement on values, trajectory, and capabilities—everything Phillips and Gailas sought after previously. After com pleting due diligence and meeting Meyer and Pete Mavrovitis, the third man aging partner, Phillips was convinced that Enlightened Hospitality would be the best partner for growth. In October, Chip City announced that it received a $10million capital injec tion from the fund, which will help the company grow outside of New York City, inmarkets like New Jersey, Boston, the DMV, Connect icut, and Florida. Phillips says the brand expects to reach 40 locations by the end of 2023. In addition to retail stores, the company partnered with Uber Eats on its nationwide shipping pro gram, allowing the chain to send six packs of cookies anywhere in the country. Chip City is part of a surge in the cookie seg ment, along with brands like Crumbl, which sur

hospitality, quality food and to open opportunities to inspire and nurture more potential leaders and chefs to grow and live their passion and pur pose with us,” Chef Margaux says. “The pandemic was an incred ibly challenging time to start a new food venture, but we feel so grate ful to have grown so rapidly in just two years—from our garage to two locations in Los Angeles,” she adds. “The support of our commu nity and tools like Univer.se helped us get up and running quickly and expand our footprint to share our passion with more people. We are looking forward to expanding to more storefronts in the L.A. area so we can share our enthusiasm for our sushi made with love.” Urbane Cafe HEADQUARTERS: VENTURA, CALIFORNIA UNITS: 25

UNITS: 25

The 40/40 List

THE MELT

The Melt bases all of its core deci sions on providing customers an “I Love It Here” experience, includ ing reinvention of common comfort foods, like the MeltBurger, which includes Angus and Wagyu beef that’s chopped, grilled, and f illed with melted cheddar cheese, jala peños, pickles, and Melt sauce on a toasted bun. CEO Ralph Bower credits much of the brand’s success to care fully listening to guests’ changing needs, particularly during COVID. At the onset of the pandemic, sales dropped 80 percent overnight. Bower addressed fears by keeping all restaurants open despite histori cally low revenue and guaranteeing paychecks for more than 140 employees at the seven Bay Area and Southern California locations. Delivery volume grew from 10 per cent pre-pandemic to more than 80 percent within the f irst month of the shutdown. Nearly three years later, the channel still mixes around 40 percent companywide. As of November, The Melt’s 2022 revenues were outpacing 2021 by nearly 60 percent, and AUV was more than doubled pre COVID levels. It f inished 2022 with 12 company-owned and 13 licensed partner locations, with the recent addition of three restaurants in West Hollywood, Danville, and

URBANE CAFE / BOB HODSON

Urbane Cafe began in 2003 when owner Tom Holt felt there was a glaring gap in Ventura’s sand wich and salad scene. The concept is known for its f ire-baked Focac cia bread, which has been around since the ancient Romans, accord ing to the restaurant. Fresh cuts of all-natural, hormone-free meat are prepared each day for grilling, bak ing, and roasting, and the brand makes it a point to partner with local growers and food suppliers whenever possible. During the thick of COVID, Urbane Cafe quickly pivoted by elevating its loyalty app and online

I.8SUSHI

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FEBRUARY 2023 | QSR | www.qsrmagazine.com